DETROIT, MI – Detroit City Council on Monday morning is to consider a new lease with Olympia Entertainment, the owners of the Detroit Red Wings, for the Joe Louis Arena downtown, where the pro hockey team currently plays. The meeting is at 8:30 a.m. at the Coleman A. Young Municipal Center in downtown Detroit.

The new lease is meant to settle outstanding matters between Olympia and the city, as the latter has agreed to transfer 39 properties to the former for a $650 million new arena and entertainment district. That project, revealed in greater detail in June, is slated for a 45-block area of the lower Cass Corridor.

The new, 18,000-seat arena and accompanying entertainment district would be funded with a mix of $365.5 million in private investment and an estimated public investment of $284.5 million.

Here are key aspects related to the lease currently being considered by the city:

The total valuation of the deal to the city, including rent, is $12,187,466. That includes, among other things, $5,175,000 Olympia will pay the city in six equal installments over the next three years. Annual rent is $1 million, offset by property taxes Olympia already paid to the city since July 2010, when the last lease expired. Olympia agrees to pay the city $250,000 for the next two and half years for police and traffic services and to pay insurance costs of about $350,000 a year, beginning last January 1. Olympia will restore 600 unused parking spaces at the city-owned parking garage for a cost of $1.25 million.

The lease is retroactive to July 1, 2010 and expires at the end of June 2015. The city then has five one-year renewal options. The earliest a new arena would be built, according to economic development officials, is 2016.

Once Olympia’s lease is up at the Joe Louis Arena, the city agrees to that no events would be held there until it is demolished.

On March 25, the Michigan Economic Development Corporation's Michigan Strategic Fund board approved up to $6 million in demolition costs of the Joe Louis Arena. The city would have to reimburse the state funds through tax increment (TIF) financing.

The lease, once approved by the city, resolves any outstanding matters Olympia has with the city in regards to the Joe Louis Arena. ”Claims includes any and all disputes related to Prior Agreements; any and all disputes related to the New Agreements as of the date the New Agreements are signed, and any and all disputes related to the Joe Louis Arena, Cobo Arnea and Joe Louis Parking Garage.” the lease says.

David Muller is the business reporter for MLive Media Group in Detroit. Email him at dmuller@mlive.com or follow him on Twitter or Facebook.a